Supplemental Insurance - What Is It?

An insurance supplemental plan covers gaps in your existing insurance policies such as living expenses and loss of income.

What Is Supplemental Insurance?

Supplemental insurance is an additional insurance policy that can give you a layer of protection in addition to your regular health or life insurance policy. An insurance supplemental plan covers gaps in your existing insurance policies such as living expenses and loss of income.

A popular supplemental policy is Medigap. This additional coverage is used by seniors who have Medicare plans that don't cover long term health care, at home care, nursing homes, or prescription drugs.

What's the Difference Between Major Health Insurance Policies and Supplemental Insurance Policies?

Though supplemental insurance is somewhat similar to other major medical and life insurance policies, do not use it as your only means of insurance protection.

Major insurance policies cover broad costs for you and your family after an injury, illness, or death. Supplemental insurance coverage is for out-of-pocket expenses and other living expenses such as utility bills and mortgage payments.

The most significant difference between supplemental insurance and other major insurance plans is that supplemental insurance benefit payments are paid directly to you, not your doctor or hospital. The reason for getting supplemental insurance is to cover expenses that were covered prior to an injury or death. With supplemental insurance, you decide how to spend the benefit payments.

Does Supplemental Insurance Help with Specific Illnesses or Emergencies?

Some basic supplemental medical plans offer fixed benefits for preventative medical care. There are supplemental policies that provide coverage in the form of cash payments for cancer treatments, heart surgery, strokes, and other illnesses. Supplemental insurance plans can also pay cash benefits for emergencies, hospital stays, and outpatient services.

How Much Does an Insurance Supplemental Cost?

Supplemental insurance can be surprisingly affordable. Some policies cost as little as $10 per month. Sudden disability resulting in lost wages can spell financial ruin for most families. If you get sick or injured, and loose your income, supplemental insurance can help you and your family handle ordinary expenses while you recover.